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Private Label: The Rival With No BrandThin moat

Abbott Laboratories (ABT) — moat facet

Abbott's nutrition brands compete with private-label products sold by the same retailers, and in late 2025 Abbott cut prices to answer them.

Abbott's nutrition brands compete with companies of their own kind and with products that carry no famous name at all. Abbott says competition in the segment "is generally from other diversified consumer and healthcare manufacturers" and that products from "private label and local manufacturers" may add competitive pressure1.

Abbott Nutrition comparable sales growth by region, first half 2026 (%)-10.3United States-1.9InternationalAbbott Q2 2026 earnings release, Nutrition sales table
The decline is mostly American.

The relationship is unusual. A private-label formula or supplement can be sold by the same retailer that sells Abbott's brand, next to it on the shelf, at a lower price. The retailer is Abbott's customer and its competitor's owner at once.

Abbott's own list of what wins in nutrition shows why that matters: "consumer preferences, advertising, formulation, packaging, scientific innovation, price, retail distribution, and availability of product forms"2. Most of that a retailer can match. The exception is the one Abbott names itself: "A significant aspect of competition is the search for ingredient innovations"3.

The pressure shows in the numbers. US Nutrition sales fell 9.0% in the second quarter of 20264, after Abbott took price actions "targeted to increase volume growth in the future" in late 20255. Cutting price is the answer to a cheaper rival when the brand alone no longer holds the customer.

Abbott's sequential numbers suggest the price cuts are starting to work. Nutrition sales rose $127 million in the second quarter of 2026 compared with the first6, though they were still 3.1% below a year earlier7.

Abbott names a second kind of threat in the same paragraph: "The introduction of new products by competitors, changes in medical practices and procedures, and regulatory changes can result in product obsolescence"8. In the fourth quarter of 2025, before the price actions took hold, US Nutrition sales fell 13.2%9. Similac, Ensure and Glucerna all sit on those shelves10. US Nutrition sold $871 million in the quarter11.

This rival wins by waiting. The rival needs only patience. If US Nutrition sales are still falling in the fourth quarter of 2026, a year after the price actions, the brandless products have kept customers the cut could not win back.

Moat trajectory: Narrowing

US Nutrition -9.0% in Q2 2026 after price actions.

The number that tests this moat
Reported
US Nutrition sales growth, latest quarter
-9.0% (Q2 2026: $871M)

Whether the brands are holding the shelf; still negative in Q4 2026 would mean the cheaper rival has won customers.

Source: Abbott Q2 2026 earnings release ↗
References
  1. ReportedAbbott says competition in the segment "is generally from other diversified consumer and healthcare manufacturers" and that products from "private label and local manufacturers" may add competitive pressure.
    Abbott Laboratories Form 10-K for 2025 (year ended 31 December 2025) - Item 1A risk factors, competition, regulation and legal proceedings. — FY2025 · publ. 20 February 2026 · source ↗
  2. ReportedAbbott's own list of what wins in nutrition shows why that matters: "consumer preferences, advertising, formulation, packaging, scientific innovation, price, retail distribution, and availability of product forms".
    Abbott Laboratories Form 10-K for 2025 (year ended 31 December 2025) - Item 1 and MD&A for Nutritional Products: pediatric and adult nutrition in the US and abroad. — FY2025 · publ. 20 February 2026 · source ↗
  3. ReportedThe exception is the one Abbott names itself: "A significant aspect of competition is the search for ingredient innovations".
    Abbott Laboratories Form 10-K for 2025 (year ended 31 December 2025) - Item 1 business and the segment note: the four segments, sales and operating earnings, employees, manufacturing sites, customers and geography. — FY2025 · publ. 20 February 2026 · source ↗
  4. ReportedUS Nutrition sales fell 9.0% in the second quarter of 2026, after Abbott took price actions "targeted to increase volume growth in the future" in late 2025.
    Abbott Laboratories second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - sales by segment and business, comparable growth, income statement, specified items, guidance and the 410th consecutive quarterly dividend - Nutrition sales and pricing actions. — Q2 2026 · publ. 16 July 2026 · source ↗
  5. ReportedUS Nutrition sales fell 9.0% in the second quarter of 2026, after Abbott took price actions "targeted to increase volume growth in the future" in late 2025.
    Abbott Laboratories fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99.1 - fourth-quarter sales by segment, the Nutrition decline and strategic price actions, continuous glucose monitor sales growth, adjusted EPS of $5.15, the Volt PFA approval and 2026 guidance. — FY2025 · publ. 22 January 2026 · source ↗
  6. ReportedNutrition sales rose $127 million in the second quarter of 2026 compared with the first, though they were still 3.1% below a year earlier.
    Abbott Laboratories second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - sales by segment and business, comparable growth, income statement, specified items, guidance and the 410th consecutive quarterly dividend - Nutrition sales and pricing actions. — Q2 2026 · publ. 16 July 2026 · source ↗
  7. ReportedNutrition sales rose $127 million in the second quarter of 2026 compared with the first, though they were still 3.1% below a year earlier.
    Abbott Laboratories second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - sales by segment and business, comparable growth, income statement, specified items, guidance and the 410th consecutive quarterly dividend - Nutrition sales and pricing actions. — Q2 2026 · publ. 16 July 2026 · source ↗
  8. ReportedAbbott names a second kind of threat in the same paragraph: "The introduction of new products by competitors, changes in medical practices and procedures, and regulatory changes can result in product obsolescence".
    Abbott Laboratories Form 10-K for 2025 (year ended 31 December 2025) - Item 1 business and the segment note: the four segments, sales and operating earnings, employees, manufacturing sites, customers and geography. — FY2025 · publ. 20 February 2026 · source ↗
  9. ReportedIn the fourth quarter of 2025, before the price actions took hold, US Nutrition sales fell 13.2%.
    Abbott Laboratories fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99.1 - fourth-quarter sales by segment, the Nutrition decline and strategic price actions, continuous glucose monitor sales growth, adjusted EPS of $5.15, the Volt PFA approval and 2026 guidance. — FY2025 · publ. 22 January 2026 · source ↗
  10. ReportedSimilac, Ensure and Glucerna all sit on those shelves.
    Abbott Laboratories Form 10-K for 2025 (year ended 31 December 2025) - Item 1 and MD&A for Nutritional Products: pediatric and adult nutrition in the US and abroad. — FY2025 · publ. 20 February 2026 · source ↗
  11. ReportedUS Nutrition sold $871 million in the quarter.
    Abbott Laboratories second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - sales by segment and business, comparable growth, income statement, specified items, guidance and the 410th consecutive quarterly dividend - Nutrition sales and pricing actions. — Q2 2026 · publ. 16 July 2026 · source ↗
Sources
Generated October 6, 2026